X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Source: Shutterstock.

The consensus seems to be that the U.S. economy is heading toward an economic downturn of indeterminant proportions. And rates won’t be doing credit unions any favors as the Fed has softened its stance on increasing rates – in fact, it has indicated a potential cut, pinching credit union margins. As a former credit union CEO, I believe now is the perfect time for credit unions to grow their market share.

Credit unions have experienced tremendous growth in many areas, but especially auto lending. Even as other types of lenders have slowed due to slower demand and record default rates, credit unions haven’t slowed nearly as much and are not experiencing the same trouble. Karim Habib of CUNA Mutual recently shared during the MDDCCUA Annual meeting that credit union auto loan balances are at record highs, experiencing 9.4% CAGR between 2012 and 2017. Credit unions have grown the most market share at 14.8%, with 20.1% of the growth coming through indirect loans and direct loans trailing behind in growth at 8.7%. He projected auto loans to account for 61% of credit union lending by 2021, up from 56% as of 2017.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Dig Deeper

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.